Session 2

Question 1

SMCR stands for:

Answer 1

Source - creator of the message
Message - the content or idea for the communication
Channel - the medium through which communication taking place
Receiver - the individual or group who receives the message

Question 2

Five key players of advertising

Answer 2

1. The Advertiser (the organization/client/the account) - the individual or organization that usually initiates the advertising process.
2. The Advertising Agency - plans and implements part or all of the advertising efforts. (May use an outside agency, or their own advertising department or in-house agency.)
3. The Vendors (Professional Suppliers and Consultants) - a group of service organizations that assist advertisers, advertising agencies, and the media, i.e. copyright experts & freelance copywriters, graphic artists, photographers, etc.
4. The Media - the channels of communication that carry the messages from the advertiser to the audience, i.e. television, magazines, radio, etc.
   5.The Target Audience - may be the purchaser or the consumer of the product, or both. May need to design different ads for each group. (Critical to know as much about these target audiences as possible)

Question 3

Current advertising issues

Answer 3

Interactive advertising, IMC, globalisation, niche marketing, consumer power, relationship marketing and customisation

Question 4

Niche marketing -

Answer 4

companies that pursue market segments of sufficient size to be profitable although not large enough to be of interest to large marketers

Question 5

What is customisation used for?

Answer 5

To have a competitive advantage against rival companies or ones who offer only generic products. The key is letting customers know they can design certain elements of a product.

Question 6

Marketing Planning Process

Answer 6

1. Mission (statement and corporate objectives)
2. Situation analysis (opportunities, 5C, SWOT, PEST)
3. Marketing strategy (target audience, measurable goals, budget)
4. Marketing mix (Product, price, promotion, place)
5. Implementation and control (put plan in action, monitor results)

Question 7

Undifferentiated marketing -

Answer 7

targets the whole market with one offer. (Mass marketing, focuses on common needs rather than what’s different)
Examples: gasoline, white bread, milk, etc. (low interest products)

Question 8

Differentiated marketing -

Answer 8

targets several different market segments and designs separate offers for each. (The goal is to achieve higher sales and stronger position)

Question 9

Market Cannibalization -

Answer 9

a loss in sales caused by a company’s introduction of a new product that displaces one of its own older products

Question 10

The Marketing Concept

Answer 10

suggests that marketing should focus first on the needs and wants of the customer, rather than finding ways to sell products that may or may not meet customers’ needs.

Question 11

Marketing communication mix

Answer 11

Advertising, personal selling, sales promotion, PR, direct marketing, pain-of-sale, packaging.

Question 12

Brand -

Answer 12

consumers’ perceptions and feelings about a product and its performance - everything that the product or the service means to consumers.

Question 13

Brand equity -

Answer 13

the differential effect that knowing the brand name has on customer response to the product and its marketing.
It could be negative: It has negative brand equity if consumers react less favorably than to an unbranded version.